|S.M.A.R.T. = Self-Monitoring, Analysis and Reporting Technology|
If SMART is reporting imminent failure, that means the hard drive is defective. You can't fix a bad drive by reinstalling Windows. I agree with Razor - find another repair shop.
"In looking at the spec from my Presario I had 64 ram but later I added another 1 GB, my hard drive was 6.4 GB"
I think it's unlikely a system with 64MB & 6.4GB HDD would support 1GB RAM. The Dell D600 only supports up to 2GB & I suspect it's much newer than your Presario. And the D600 is almost 10 yrs old.
I suggest you limit the HDD size to 120GB or less. IDE/PATA HDDs are getting harder to find but I saw this Seagate 80GB at Geeks.com for $40:
Do you have an XP disc? Do you know how to partiton/format & install Windows?